Problems of Ford Motor Company in the Year 2000
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ScribdTranslationsProblems of Ford Motor Company in the Year 2000
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In the following work, an analysis will be made under the topics of the Ethics course for the
businesses, the case of Ford and Firestone. Various topics will be addressed that
will study in the current cycle 2012-2.
Background
Before starting to describe the problem with both companies, Ford and Firestone;
There will be a description of these companies first.
Ford Motor Company
FORD MODEL A: first car sold
Company dedicated to the manufacture of cars, was founded by Henry Ford in
1903 in the United States. Its first sale took place on July 15, 1903. This
car, called the Ford Model A, was sold to Dr. E. Pfenning, a physicist
interested in mechanics and, as can be seen in cars.
Currently, Ford is part of the 500 corporations with the highest revenues in
the world. It has plants in South America, North America, Africa, Europe, and
in Oceania.
For today, Ford has reached the production of its 350th car.
millions, the Ford Focus, which is simultaneously the best-selling car of
world so far this year (2012). Among its current models are the
models Ka, Fiesta, Ranger, Ford Escape, among others.
Firestone Tire and Rubber Company
This company is dedicated to the manufacture of tires for vehicles.
land transportation was founded by Harvey Firestone in the 19th century. The
Tires first appeared in the automotive field in the year
1909 for the Indianapolis 300 competition.
After some time, Harvey Firestone contacted the first man who produced
chain automobiles: Henry Ford, with whom he made a deal to supply him with the
tires for their different car models.
Currently, Firestone produces a variety of tires for both roads,
snow, trails, paths, etc. That is to say, all-terrain tires, among which
the tire models Bridgestone Turanza ER30, Firestone Firehawk,
Bridgestone Potenza, among others.
Start of the crisis
The Ford-Firestone crisis began with the introduction of the Ford model to the market.
Explorer in the year 1990. Because of this vehicle, many were triggered.
deaths - approximately more than 203 deceased - due to poor performance
the tires in warm environments and if traveling at high speeds, these
they were collapsing.
The reasons why tire production was defective were
because; first of all, Firestone workers were inexperienced on the subject and
they did not receive training; secondly, Firestone ignored the evidence of
quality of their tires, which showed defects when they were subjected to
higher temperatures; in third place, Firestone used recycled rubber to
to produce the tires in order to meet Ford's requirement and at the same
time to minimize costs and; fourth, Ford engineers suggested the
redesign of the Ford Explorer to give it more stability, but which was not realized
due to the pressure for the vehicle's launch on the agreed date.
It is due to these reasons and the numerous ongoing accidents surrounding the
Ford Explorer model, which by 2000 the National Administration of
National Highway Traffic Safety Administration (NHTSA) sends
a letter to Ford-Firestone requesting information about the Ford wheels
Explorer. Some time later, in July of that same year, Ford receives the information.
from Firestone, where it was found that 241 tires per million were
defective, which when failing caused the vehicle to overturn
killing its occupants. However, Ford hides or ignores this.
information and announces that there is no defect in their tires, "washing" themselves
hands of the matter and continuing to produce such defective vehicles not only
in the United States, but also in Venezuela, Saudi Arabia, among other countries.
Ford did not publicly announce the true results, because if it did this
it would result in the removal from the market of all the
Ford Explorer models that had Firestone tires—which
totaled 14.5 million tires-, which meant huge losses
financial. And on the other hand, for Firestone, this problem weakened their
survival in the tire market against its competitor Goodyear.
Published by Patricia Huamán F.
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